Snapple 2012 Annual Report Download - page 7

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Leading With Flavor
MORE OPTIONS + GREAT TASTE
Backed by our winning flavors and the strength and capabilities of our research and development scientists, we’re growing our
business through product innovation that fulfills consumers’ increasing desires for variety, great taste and fewer calories.
Get Both with the PERFECT TEN
Building on the momentum of last year’s successful launch of Dr Pepper
TEN, we’ve introduced five additional TEN flavors in 2013 that will help
energize the beverage aisle. With breakthrough flavor innovation, these
products aim to bring new and lapsed consumers back to the CSD
category. Our TEN products have great taste and only 10 calories per
12-oz. serving, making them perfect for consumers who want fewer
calories but aren’t willing to compromise on taste. The TEN platform
delivers both – low calories and the full flavor and taste experience of
regular soda.
Our new TEN products are intended to drive incremental sales in the
CSD category by increasing purchase frequency and volume. That’s
exactly what happened in test markets across the country in 2012.
About 40 percent of 7UP TEN, A&W TEN, Sunkist® TEN™ Soda,
Canada Dry TEN and RC TEN purchases were incremental to the CSD
category. As anticipated, volume for regular and diet CSDs grew at an
accelerated rate in test-market stores selling our TEN products. Like-
wise, volume for the five product lines that include a TEN option grew at
more than twice the rate of sales of those products in stores without TEN.
A national rollout of TEN is now under way, and our TEN platform is
gaining traction with retailers by providing the point of difference they seek to help drive consumer traffic into their stores and expand
the CSD category. Moreover, these products have significant potential in immediate consumption as customers stock more
low-calorie offerings in vending machines in municipal buildings, healthcare facilities and other public venues.
DR PEPPER TE N
IS DRIVING
CATEGORY GROWTH
55 percent of Dr Pepper TEN volume
was incremental to the CSD category.
32%
23%
32%
23% Consumers
Switching
from Water
Consumers
Switching from
Non-CSDs
6